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Wendy's Offers Free Food, Guarantee to Lure Breakfast Customers

By Daniel B. Kline - Mar 5, 2020 at 10:15AM

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The chain is pulling out all the stops.

Wendy's (WEN -1.55%) knows that changing consumer behavior can be incredibly difficult. It has tried and failed to launch breakfast before and the chain wants to make every effort to have its latest attempt at the morning meal be successful.

To make that happen, the company has not only decided to offer free food to customers, it's also guaranteeing their happiness.

A person puts a Wendy's bag into a Doordash delivery bag.

Wendy's breakfast can be delivered as well. Image source: Wendy's.

What is Wendy's doing?

The fast-food chain is offering a free Honey Butter Chicken Biscuit with any breakfast purchase. That offer can be found in its app. In addition to offering free food, Wendy's is also offering a guarantee.

"If you somehow don't love something we make you, we'll exchange it for free," the company said on its website.

Exchanges must happen by 10:30 a.m. the next day and they require a receipt. The chain will change like items -- i.e. a side for a side or a sandwich for a sandwich.

Why is Wendy's doing this?

Becoming a player in breakfast will improve the chain's bottom line. Being open for more hours gives each location a chance to make money without significant cost increases aside from the labor required to serve the morning meal.

The biggest challenge Wendy's faces is getting customers through the door, especially when rivals like McDonald's are trying to derail its efforts. Offering a guarantee and giving out free food increases the odds that customers will at least give the chain a chance. Wendy's is betting that if people try the food, they will like it and come back.

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Stocks Mentioned

The Wendy's Company Stock Quote
The Wendy's Company
WEN
$19.69 (-1.55%) $0.31
McDonald's Corporation Stock Quote
McDonald's Corporation
MCD
$251.46 (-0.33%) $0.83

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